In case it's not clear, even non-forwarding DNS servers have to make DNS queries to the authoritative servers of each domain.
It may stop invalid results for top level domains (queries to the root servers might not be intercepted), but would likely still serve ads for invalidsubdomain.validdomain.com.
This is one of many reasons why we need broad DNSSEC adoption.
"All records are signed offline. When a nameserver receives a query it looks up the answer plus the signature and returns the two (RRSIG + RRset) to the resolver. The signature is thus not created in real time. How can a secure-aware nameserver then respond to a query for something it does not know (that is, give an NXDOMAIN answer)? The only way to have offline signing and NXDOMAIN answers work together is to somehow sign the data you do not have.
In DNSSEC this is accomplished by the Next SECure (NSEC) record. This NSEC record holds information about the next record; it spans the nonexistence gaps in a zone, so to say."
Source: https://www.cisco.com/web/about/ac123/ac147/archived_issues/...
The namedroppers working group eventually conceded that, no, it wasn't OK to disclose every domain name signed under DNSSEC; that, for instance, virtually every large enterprise in the world had made a practice of setting up dual-facing DNS so that the world only saw a preapproved subset of their name.
And so we got the NSEC3 protocol, which uses a hashing scheme similar to Unix password files. So now, instead of directly dumping domains, attackers get to crack them. Daniel J. Bernstein has a couple presentations about how easy this is.
DNSSEC is a bit of a debacle.